Clashes Coming On Energy Trades

By

Ryan Tracy

Nov. 18, 2012 8:16 p.m. ET

WASHINGTON—Deutsche Bank AG says it would be cheaper to simply pay a $1.6 million penalty sought by the Federal Energy Regulatory Commission in September for allegedly manipulating California electricity markets than to fight the agency in court.

Yet the German bank sent FERC an 89-page document defending itself earlier this month. The reason: Giving in to the agency might set a precedent that would empower the electricity regulator...